A military occupation is temporary and not permanent and the military occupier isn't allowed to settle its own civilians in occupied territory.
Two conditions that don't apply to West Bank, so it looks more like a defacto annexation than a temporary military occupation.
Since you have insisted on resurrecting this foolishness, let me express my discomfort with the whole idea.
To do the math, as you like to say, let's summarize the situation.
The Palestinians have been offered their own state. The offers were rejected because their leaders couldn't accept the co-existence of a Jewish state.
The Palestinians were offered a chance at economic growth and prosperity when Israel withdrew from Gaza. The Palestinians used that new-found freedom to escalate their terrorist attacks on Israel.
The Palestinians support terrorist organizations such as Hamas and its goals of killing as many Jews as possible and destroying the state of Israel.
As a result, the Palestinians have remained under military occupation much longer than necessary. And you now argue that the Palestinians' fixation on killing Jews should be rewarded by essentially granting them the "right of return" without any negotiations.
Whether it's your intention or not, your proposal means the Palestinians would be rewarded for their fixation on killing Jews.
That line of argument must be rejected.